The Medicinal And Toilet Preparation

(Excise Duties) Act, 1955

PREAMBLE

(16 OF 1955)

[27th April, 1955]

An Act to provide for the levy and collection of duties of  excise on medicinal and
toilet preparations containing alcohol, opium, Indian hemp or other narcotic drug
or narcotic

Be it enacted by Parliament in the Sixth Year of the Republic of India as follows :

• 1. SHORT TITLE, EXTENT AND COMMENCEMENT.

(1) This Act may be called the Medicinal and Toilet Preparations
(Excise Duties) Act, 1955.

(2) It extends to the whole of India.

(3) It shall come into force on such date 2 , as the Central 

Government may, by notification in the official Gazette,
appoint.
 OBJECTIVES

• TO PROVIDE FOR THE COLLECTION OF LEVY

AND DUTIES OF EXCISE ON MEDICINAL AND
TOILET PREPARATIONS CONTAINING
ALCOHOL,NARCOTIC DRUGS
• TO PROVIDE FOR UNIFORMITY IN THE RULES
AND RATES OF EXCISEDUTIES LEVIABLE OF
SUCH PREPARATIONS THROUGHOUT THE
COUNTRY
 DEFINITIONS.

• In this Act unless the context otherwise requires, -

(a) "alcohol" means ethyl alcohol of any strength and purity having chemical
compositions C2H5 OH;

(aa) "Coca derivative" means –

(i) crude cocaine that is any extract of coca leaf which can be used directly or
indirectly, for the manufacture of cocaine;
(ii) ecgonine, that is laevo-ecgonine having the chemical  formula, C9H15NO3H2O,
and all the derivatives of laevo-ecgonine from which it can be recovered, and
(iii) cocaine, that is, methyl-benzoyl-laevo-ecgonine having the chemical formula,
C1H2NO4 and its salts;

(ab) "coca-leaf" means –

(i) the leaf and young twigs of any coca plant, that is, of the Erythroxylo coca
(Lamk.) and the Erythroxylon novo-granatense (Hiern.) and their varieties, and of
any other species of this genus which the Central Government may, by notification
in the official Gazette, declare to be coca plants for the purposes of this Act, and
(ii) any mixture thereof, with or without neutral materials;
• derivative of opium, means -

(i) medicinal opium, that is, opium which has undergone the  processes
necessary to adopt it for medicinal use;

(ii) prepared opium, that is, any product of opium obtained by any series of
operations designed to transform opium into an extract suitable for smoking
and the dross or other residue remaining after opium is smoked ;

(iii) morphine, that is, the principal alkaloid of opium having the chemical
formula C17H19NO8, and its salts, and its derivatives; 

(b) "collecting Government" means the Central Government or, as the case
may be, the State Government which is entitled to collect the duties levied
under this Act;

(c) "dutiable goods" means the medicinal and toilet preparations specified in
the schedule as being subject to the duties of excise levied under this Act;
• (d) "excise officer" means an officer of the Excise Department of any State
and includes any person empowered by the collecting Government to
exercise all or any of the powers of an excise officer under this Act;

(e) "Indian hemp" means -

(i) the leaves, small stalks and flowering or fruiting tops of the Indian hemp
plant (Cannbis-sativa L), including all forms known as bhang, sidhi or ganja;

(ii) charas, that is, the resin obtained from the Indian hemp plant, which has
not been submitted to any manipulations other than those necessary for
packing and transport;

(iii) any mixture, with or without neutral materials, of any of the above
forms of Indian hemp or any drink prepared there from; and

(iv) any extract or tincture of the above forms of Indian hemp; 

• f) "manufacture" includes any process incidental or ancillary
to the completion of the manufacture of any dutiable goods;

(g) "medicinal preparation" includes all drugs which are a

remedy or "prescription" prepared for internal or external use
of human beings or animals and all substances intended to be
used for or in the treatment, mitigation or prevention of
disease in human beings or animals;

(h) "narcotic drug" or "narcotic" means a substance which is

coca leaf, or coca derivative, or opium or derivative of opium,
or Indian hemp and shall include any other substance,
capable of causing or producing in human beings
dependence, tolerance and withdrawal syndromes and which
the Central Government may, by notification in the official
Gazette, declare to be a narcotic drug or narcotic; 
• i) "opium" means -

(1) the capsules of the poppy (Palaver somniferous L), whether in their original form or
cut, crushed or powdered and whether or not juice has been extracted there from,

(2) the spontaneously coagulated juice of such capsules which has not been submitted
to any manipulations other than those necessary for packing and transport; and

(3) any mixture, with or without neutral materials of any of the above forms of opium,

and includes and derivative of opium;

(j) "prescribed" means prescribed by rules made under this Act;

(k) "toilet preparation" means any preparation which is intended for use in the toilet of
the human body or in perfuming apparel of any description, or any substance intended
to cleanse, improve or alter the complexion, skin, hair or teeth, and includes
deodorants and perfumes.
•3. DUTIES OF EXCISE TO BE LEVIED AND COLLECTED ON CERTAIN GOODS.

(1) There shall be levied duties of excise, at the rates specified in the schedule, on all dutiable goods
manufactured in India.

(2) The duties aforesaid shall be leviable -

(a) where the dutiable goods are manufactured in bond, in the State in which such goods are released from a
bonded warehouse for home consumption, whether such State is the State of manufacture or not;

(b) where dutiable goods are not manufactured in bond, in the State in which such goods are manufactured.

(3) Subject to the other provisions contained in this Act, the duties aforesaid shall be collected in such manner
as may be prescribed.

Explanation :

Dutiable goods said to be manufactured in bond within the meaning of this section if they are allowed to be 
manufactured without payment of any duty of excise leviable under any law for the time being in force in
respect of alcohol, opium, Indian hemp or other narcotic drug or narcotic which is to be used as an ingredient
in the manufacture of such goods.
• 4. REBATE OF DUTY ON ALCOHOL, ETC. SUPPLIED FOR
MANUFACTURE OF DUTIABLE GOODS.

Where alcohol opium, Indian hemp or other narcotic drug or

norcotic had been supplied to a manufacturer or any dutiable
goods for use as an ingredient of such goods by, or under the
authority of, the collecting Government and a duty or excise on
the goods so supplied had already been recovered by such
Government under any law for the time being in force, the
collecting Government shall, on an application being made to it in
this behalf, grant in respect of the duty of excise leviable under
this Act, a rebate to such manufacturer of the excess, if any, of
the duty so recovered over the duty leviable under this Act.
• 5. RECOVERY OF SUMS DUE TO GOVERNMENT.

In respect of the duty of excise and any other sums of any kind
payable to the collecting Government under any of the provisions of
this Act or of the rules made there under, the Excise Officer
empowered by the said rules to levy such duty or require the
payment of such sums, may deduct the amount so payable from any
money owing to the person from whom such sums may be
recoverable or due, which may be in his hands or under his disposal
or control or may recover the amount by attachment and sale of
dutiable goods belonging to such person; and if the amount payable
is not so recovered he may prepare a certificate signed by him
specifying the amount due from the person liable to pay the sum and
sent to it the Collector of the district in which  such person resides or
conducts his business, and the said  Collector on receipt of such
certificate shall proceed to recover from the said person the amount
specified therein in the same manner as an arrear of land revenue.
• 6. CERTAIN OPERATIONS TO BE SUBJECT TO LICENCES.

(1) The Central Government may, by notification in the official Gazette, provide
that from such date as may be specified in the notification, no person shall
engage in the production or manufacture of any dutiable goods or of any
specified component parts or ingredients of such goods or of specified container
of such goods or of labels of such containers except under the authority and in
accordance with the terms and conditions of a licence granted under this Act.

(2) Every licence under sub-section (1) shall be granted for such area, if any, for
such period, subject to such restrictions and conditions, and in such form and
containing such particulars as may be prescribed.
• OFFENCES AND PENALTIES.

If any person -

(a) contravenes any of the provisions of a notification issued under Sec. 6; or

(b) evades the payment of any duty of excise payable under this Act; or

(c) fails to supply any information which he is required by rules made under this Act
to supply or (unless with a reasonable belief, the burden of proving which shall be
upon him, that the information supplied by him is true) supplies false information; or

(d) attempts to commit or abets the commission of any offence mentioned in Cl. (a)
or Cl. (b).

He shall for every such offence be punishable with imprisonment for a term which
may extend to six months, or with fine which may extend to two thousand rupees, or
with both.
• POWER OF COURTS TO ORDER FORFEITURE.

Any Court trying any offence under Sec. 7 may order the 
forfeiture to the collecting Government of any dutiable
goods in respect of which the Court is satisfied that an
offence under this Act has been committed, and may also
order the forfeiture of any alcohol, drugs or materials by
means of which the offence has been committed and of any
receptacles, packages or coverings in which any such goods
or articles are contained and the animals, vehicles, vessels or
other conveyances used in carrying such goods or articles,
and any implements or machinery used in the manufacture
of such goods.
• POWER TO ARREST.

(1) Any excise officer duly empowered by rules made in this behalf may
arrest any person whom he has reason to believe to be liable to
punishment under this Act.

(2) Any person accused or reasonably suspected of committing an offence

under this Act or any rules made there under, who, on demand of any
excise officer duly empowered by rules made under this Act, refuses to
give his name and residence, or who gives a name or residence which such
officer has reason to believe to be false may be arrested by such officer in
order that his name and residence may be ascertained.
• POWER TO SUMMON PERSONS TO GIVE EVIDENCE AND PRODUCE DOCUMENTS IN INQUIRIES
UNDER THIS ACT.

(1) Any excise officer duly empowered by rules made in this  behalf shall have power to
summon any person whose attendance he considers necessary either to give evidence or to
produce a document or any other thing in any inquiry which such officer is making for any of
the purpose of this Act.

(2) A summons to produce documents or other things under sub-section (1) may be for the
production of certain specified documents or things or for the production of all documents or
things of a certain description in the possession or under the control of the person concerned.

(3) All persons so summoned shall be bound to attend either in person or by an authorized
agent as such officer may direct and all persons so summoned shall be bound to state the truth
on any subject respecting which he is examined or make statements and produce such
documents and other things as may be required :

Provided that the exemption under Sec. 132 and Sec. 133 of the Code of Civil Procedure, 1908
(5 of 1908), shall apply to requisitions for attendance under this section.

(4) Every such inquiry as aforesaid shall be deemed to be a  judicial proceeding within the
meaning of Sec. 193 and Sec. 228 of the Indian Penal Code (45 of 1860).
 
• OFFICERS REQUIRED TO ASSIST EXCISE OFFICERS.

All officers of Customs and Central Excise, and such

other officers of the Central Government as may be
specified in this behalf, and all police officers and all
officers engaged in the collection of land revenue are
hereby empowered and required to assist excise
officers in the execution of this Act.
• OWNERS OR OCCUPIERS OF LAND TO REPORT MANUFACTURE OF
CONTRABAND DUTIABLE GOODS.

Every owner or occupier of land and the agent of any such owner
or occupier in charge of the management of that land, if dutiable
goods are manufactured thereon in contravention of the provisions
of this Act or the rules made thereunder, shall, in the absence of
reasonable excuse, be bound to give notice of such manufacture to
a Magistrate or to an officer of the Excise, Customs, Police or Land
Revenue Department immediately the fact comes to his notice.
• PUNISHMENT FOR CONNIVANCE AT OFFENCES.

Any owner or occupier of land or any agent of such owner

or occupier in charge of the management of the land, who
willfully connives at any offence against the provisions of
this Act or any rules made there under shall, for every
such offence, be punishable with imprisonment for a term
which may extend to six months, or with fine which may
extend to five hundred rupees, or with both.
• SEARCHES AND ARRESTS HOW TO BE MADE.

All arrests and searches made under this Act or

under any rules made there under shall be carried
out in accordance with the provisions of the Code of
Criminal Procedure, 1898 (5 of 1898) 6 , relating
respectively to searches and arrests under the Code.
• DISPOSAL OF PERSONS ARRESTED.

(1) Every person arrested under this Act shall be forwarded  without delay
to the nearest Excise Officer empowered to send persons so arrested to a
Magistrate or if there is no such excise officer within a reasonable
distance to the officer-in-charge of the nearest police station.

(2) The officer-in-charge of a police station to whom any person is

forwarded under sub-section (1) shall either admit him to bail to appear
before a Magistrate having jurisdiction or in default of bail forward him
without delay in custody to such Magistrate.
• INQUIRY HOW TO BE MADE BY EXCISE OFFICERS AGAINST ARRESTED
PERSONS FORWARDED TO THEM.

(1) When any person is forwarded under Sec. 15 to an excise officer

empowered to send persons so arrested to a Magistrate, the Excise
Officer shall proceed to inquire into the charge against him.

(2) For the purpose of sub-section (1), the Excise Officer may exercise the
same powers, and shall be subject to the same provisions, as the officer-
in-charge of a police station may exercise and is subject to under the Code
of Criminal Procedure, 1898 (5 of 1898), when investigating a cognizable
case :
• Provided that -

(a) if the Excise Officer is of opinion that there is sufficient evidence or

reasonable ground of suspicion against the accused person he shall either
admit him to bail to appear before Magistrate having jurisdiction in the
case, or forward him in custody without delay to such Magistrate;

(b) if it appears to the Excise Officer that there is not  sufficient evidence
or reasonable ground of suspicion against the accused person, he shall
release the accused person on his executing a bond with or without
sureties as the Excise Officer may direct, to appear, if and when so
required, before the Magistrate having jurisdiction and shall make a full
report of all the particulars of the case to him official superior.

(3) All officers exercising any powers under Sec. 15 or this section shall so
exercise their powers as to ensure that every person who is arrested and
detained in custody is produced before the nearest Magistrate within a
period of twenty-four hours of such arrest excluding the time necessary
for the journey from the place of arrest to the Court of the Magistrate.
 
• VEXATIOUS SEARCH, SEIZURE, ETC. BY EXCISE OFFICER.

(1) Any officer exercising powers under this Act or under the rules made there under
who -

(a) without reasonable ground of suspicion searches or causes to be searched any

place, conveyance or vessel;

(b) vexatiously and unnecessarily detains, searches or arrests any person;

(c) vexatiously and unnecessarily seizes the moveable property of any person on
pretence of seizing or searching for any article liable to confiscation under this Act;

(d) commits, as such officer, any other act to the injury of any person, without having
reason to believe that such act is required for the execution of his duty;

Shall, for every such offence, be punishable with fine which may extend to two
thousand rupees.

(2) Any person willfully and maliciously giving false information and so causing an
arrest or a search to be made under this Act shall be punishable with imprisonment
for a term which may extend to two years, or with fine which may extend to two
thousand rupees, or with both.
• FAILURE OF EXCISE OFFICERS ON DUTY.

Any Excise Officer who ceases or refuses to perform, or

withdraws himself from the duties of his office, unless he had
obtained the express written permission of his superior officer
or has given such superior officer two month's notice in writing
of his intention or has other lawful excuse, shall be punishable
with imprisonment for a term which may extend to three
months, or with fine which may  extend to three months' pay,
or with both.
• POWER TO MAKE RULES.

(1) The Central Government may, by notification in the official Gazette, make rules to carry
out the purposes of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules
may -

(i) provide for the assessment and collection of duties levied under this Act, the authorities
by whom functions under this Act are to be discharged, the issue of notices requiring
payment, the manner in which the duties shall be payable and the recovery of the duty not
paid;

(ii) prohibit absolutely, or with such exceptions, or subject to such conditions as the Central
Government may think fit, the manufacture, or any process of the manufacture, or dutiable
goods or of any component parts or ingredients or containers thereof, except of land or
premises approved for the purpose;

(iii) regulate the removal of dutiable goods from the place where they are stored or
manufactured or subjected to any process of production or manufacture and their
transport to or from the premises of a licensed person, or a bonded warehouse, or to a
market;
• iv) regulate the production or manufacture or any process of production
or manufacture, the possession and storage of dutiable goods or of any
component parts or ingredients or containers thereof so far as such
regulation is essential for the proper levy and collection of duties levied
under this Act;

(v) provide for the employment of excise officers to supervise the carrying
out of any rules made under this Act;

(vi) require a manufacturer or the licensee of a warehouse to provide

accommodation within the precincts of his factory or warehouse for
Excise Officers employed to supervise the carrying out of rules made
under this Act and prescribe the scale of such accommodation;

(vii) provide for the appointment, licensing, management and supervision

of bonded warehouses and the procedure to be followed in entering
dutiable goods into a clearing goods from such warehouses or in the
movement of dutiable goods from one bonded warehouse to another;
• (viii) provide for the distinguishing of excisable goods which have been
manufactured under licence, or materials which have been imported
under licence and of goods on which duty has been paid or which are
exempt from duty under this Act;

(ix) impose on persons engaged in the manufacture, storage or sale

(whether on their own account or as brokers or commission agents) so far
as such imposition is essential for the proper levy and collection of the
duties levied under this Act, the duty of furnishing information, keeping
records and making returns and prescribe the nature of such information
and form of such records and returns the particulars to be contained
therein and the manner in which they shall be verified.
 (x) require that dutiable goods shall not be sold or offered or kept for sale except in
prescribed containers, bearing a banderol, stamp or label of such nature and affixed in
such manner as may be prescribed;

(xi) provide for the issue of licences and transport permits and the fees, if any, to be
charged therefor;

(xii) provide for the detention of dutiable goods, plant,  machinery or material for the
purpose of exacting the duty;

(xiii) provide for the confiscation of dutiable goods in respect of which a breach of any rule
made under this Act has been committed, and also for the confiscation of any alcohol,
drugs or materials by means of which the breach has been committed and of any
receptacle, packages or coverings in which goods or article are contained, and the
animals, vehicles, vessels, or other conveyances used in carrying such goods or articles
and any implements or machinery used in the manufacture of such goods;
• (xiv) provide for the levy of a penalty not exceeding two
thousand rupees for a breach of any rule made under this Act;

(xv) provide for the procedure in connection with such 

confiscation and the imposition of such penalty, the maximum
limits up to which particular classes of excise officers may
adjudge such confiscation or penalty, appeals from orders of
such officers and revision of such orders by some higher
authority, the time-limit for such appeals and revisions and the
disposal of goods and articles confiscated;

(xvi) authorize and regulate the compounding of offences

against, or liabilities incurred under, this Act or the rules made
thereunder;
• xvii) authorize and regulate the inspection of factories and provide for the taking of
samples or for the making of tests of any substance produced therein and for the
inspection or search of any place, conveyance or vessel used for the production,
storage, sale or transport of dutiable goods in so far as such inspection or search is
essential for the proper levy and collection of the duties levied under this Act;

(xviii) provide for the grant of a rebate of the duty paid on dutiable goods which are
exported out of India or shipped for consumption on a voyage to any port outside
India;

(xix) exempt any dutiable goods from the whole or any part of the duty levied
under this Act where in the opinion of the Central Government, it is necessary to
grant such exemption in the interest of the trade or in the public interest;
• (xx) notify in the official Gazette lists of the names and  descriptions of
preparations which would fall for assessment under any particular item or
the schedule or for regulating their manufacture, transport and
distribution;

(xxi) authorize particular classes of excise officers to provide by written

instructions for supplemental matters arising out of any rule made by the
Central Government under this section.

(3) Where any confiscation or penalty has been adjudged in respect of a

breach of any rule under this Act, which is also an offence under Sec. 7
the person concerned shall not be prosecuted under that section.
• (4) Every rule made under this section shall be laid as soon as may
be after it is made before each House of Parliament while it is in
session for a total period of thirty days which may be comprised is
one session or in two or more successive sessions, and if, before the
expiry of the session immediately following the session or the
successive sessions aforesaid both Houses agree in making any
modification in the rule or both Houses agree that the rule should
not be made, the rule shall thereafter have   effect only in such
modified form or be of no effect, as the case may be, so, however,
that any such modification or annulment shall be without prejudice
to the validity of anything previously done under the rule.
• BAR OF SUITS AND LIMITATION OF SUITS AND OTHER LEGAL
PROCEEDINGS.

(1) No suit or other legal proceeding shall lie against the  collecting
Government or against any officer in respect of any order passed in good
faith or any act in good faith done or ordered to be done under this Act.

(2) No suit, prosecution or other legal proceeding shall be instituted against

the collecting Government or against any  officer for anything done or
ordered to be done under this Act after the expiration of six months from
the accrual of the cause of action or from the date of the act or order
complained of.
• REPEALS AND SAVINGS.

If, immediately before the commencement of this Act, there is in force in

any State any law corresponding to this Act, that law is hereby repealed :

Provided that all rules made, notifications issued, licences or permits

granted, powers conferred under any law hereby repealed shall, so far as
they are not inconsistent with this Act, have the same force and effect as
if they had been respectively made, issued, granted or conferred under
this Act and by the authority empowered hereby in that behalf.
Medicinal Preparations

1. Allopathic Medicinal Preparations

(i) Medicinal preparations containing alcohol which are not capable of being consumed as ordinary
alcoholic beverages -

(a) Patent or proprietary Twenty per cent. admedicines. valorem or  rupees  ten   per litre of  pure
alcohol content, whichever is higher.

(b) Others. Rupees ten per  litre of pure  alcohol content.

(ii) Medicinal preparations containing alcohol which are capable of being consumed as ordinary
alcoholic beverages -

(a) Medicinal preparations which contain Twenty per cent. ad known active ingredients in therapeutic
valorem or  rupees  quantities. twenty  per litre of pure alcohol  content,  whichever is  higher.

(b) Others. Twenty per cent.  ad valorem or rupees eighty per litre of  pure alcohol  content,
whichever  is higher.

(iii) Medicinal preparations not con- Twenty per cent.  taining alcohol but containing narcotic ad
valorem.  drug or narcotic.
• 2. Medicinal preparations in Ayurvedic,  Unani or other indigenous systems of   medicine -

(i) Medicinal preparations containing Nil self-generated alcohol which are not capable of
being consumed as ordinary alcoholic beverages.

(ii) Medicinal preparations containing Rupees two and  self-generated alcohol which are
capable fifty paise per  of being consumed as ordinary alcoholic litre of pure  beverages.
alcohol content.

(iii) All other containing alcohol Rupees eighty per which are prepared by distillation litre
of pure  or to which alcohol has been added. alcohol content.

(iv) Medicinal preparations not Twenty per cent. ad containing alcohol but containing
valorem. narcotic drug or narcotic.

• 3. Homoeopathic preparations Rupees twenty per  containing alcohol. litre of pure 

alcohol content.
• TOILET PREPARATIONS

4. Toilet preparations containing One hundred per alcohol or narcotic drug or narcotic. cent. ad valorem or  rupees
twenty  per litre of pure alcohol content whichever is higher.

Explanation I :

"Patent or proprietary medicines" means any medicinal preparation which bears either on itself or on its 
container or both, a name which is not specified in a monograph in a pharmacopoeia, formulary or other
publications notified in this behalf by the Central Government in the official Gazetee, or which is a brand name,
that is, a name or a registered trade-mark under the Trade and Merchandise Marks Act, 1958 (43 of 1958), or any
other mark such to a symbol, monogram, label, signature or  invented words or any writing which is used in
relation to that medicinal preparation for the purpose of indicating or so as to indicate a connection in the course
of trade between the preparation and some person having the right either as proprietor or otherwise to use the
name or mark with or without any indication of the identity of that person.

Explanation II :

Where any article is chargeable with duty at a rate dependent on the value of the article such value shall be 
deemed to be the value as determined in accordance with the   provisions of Sec. 4 of the Central Excises and Salt
Act, 1944 (1 of 1944).

Explanation III :

For the purposes of this schedule, "pure alcohol content", in relation to a preparation, means the ethyl alcohol
content in the preparation expressed as ethyl alcohol of 100 per cent. by volume at 150 Degree C.
•